21.08.202606:00:00UTC+00UK Retail Sales Growth Cools Sharply to 1.6% in July, Down from 4.2% in June

Year-on-year retail sales growth in the United Kingdom slowed markedly in July 2026, with the indicator easing to 1.6% from 4.2% in June. The latest figure, updated on 21 August 2026, underscores a loss of momentum in consumer spending heading into the second half of the year.

Both the current and previous readings compare monthly retail activity to the same month a year earlier. While June’s 4.2% increase suggested relatively robust demand, the July reading indicates a considerable moderation, potentially signaling growing caution among UK consumers or the impact of tighter financial conditions on household budgets.

The sharp deceleration in annual growth will be closely watched by markets and policymakers as an early signal of shifting consumption trends. With retail sales a key driver of the UK economy, July’s weaker performance raises questions about the resilience of domestic demand in the months ahead.